Ann: Cobar Gold Project - Potential for Large Gold System, page-3

Announcement 3 April 2017

COBAR GOLD PROJECT UPDATE REGIONAL REVIEW SUPPORTS POTENTIAL FOR LARGE GOLD SYSTEM -

A regional structural review of the Cobar Gold Project supports the potential for a large gold system. - The structural controls noted by the review have strong affinities with the nearby Peak Gold trend, which hosts ~4Moz of gold over 8 kilometres of strike. - The review identified a series of northeast trending quartz vein arrays and breccia zones in northwest fault systems that appear to control high-grade gold. - The goldfield has potential to be more extensive than previously recognised and the known prospects (Battery Tank, Good Friday, Sunrise and Boundary) may be linked based on this new interpretation. - Diamond drilling has been completed at Battery Tank, Good Friday, Sunrise and Boundary Prospects. 8 holes (710m) have tested the northeast trending structures at each prospect. - Following detailed logging, assays from the first core hole, the extension of HRDD003 at the Good Friday Prospect has been received, expanding the high-grade gold intercept in the hole by 10m. - Results for HRDD003 now comprise: An intercept of 39m @ 2.4g/t Au from 29m including previously reported 8m @ 4.9g/t Au from 30m and 7.8m @ 4.0g/t Au from 50m within this interval 1 The high-grade intercept lies within a broader intercept of 66m @ 1.5g/t Au from 2m. - Results for assays for the remaining holes are still awaited. - New target zones have been identified and auger soil grids over these zones to test for prospective geochemistry are underway. Approvals for a follow-up RC drill program targeting additional northeast structures in the known prospects, as well as first-pass drilling targeting similar structures in the new target areas, are also underway